Outgoing Federal Reserve Chairman Ben Bernanke on Wednesday announced a slight decrease in the Fed’s unprecedented “quantitative easing” program.
He announced the Fed would spend $75 billion a month to prop up bond and mortgage markets instead of the $85 billion a month it had been spending. He also announced the Fed likely would go years longer manipulating short-term interest rates to virtually nothing. This policy benefits borrowers, including governments, but hurts savers, conservative investors and persons on fixed incomes, because they earn virtually nothing on their money.
“The Federal Reserve’s announcement today that it is ‘easing’ back on quantitative easing basically leaves current monetary policy unchanged,” said Richard Ebeling, professor of economics at Northwood University.
‘Still Preventing Markets from Working’
He said reducing asset purchases $10 billion a month “means that in comparison to the $1.02 trillion of new money that the Federal Reserve created in 2013, the...
The Wisconsin Workers Compensation Advisory Council (WCAC) unanimously voted at its December meeting to back a plan that would tie healthcare rates in the Workers Compensation system to a fee schedule based on local market prices.
Currently, there are no limits on what health care providers can charge the Workers Compensation system for treating injured workers. Not surprisingly, that is the fastest growing cost in an otherwise fiscally sound system.
In 2012, the median amount paid by workers...
On a snowy day in Washington, several federal agencies this week packed some mean regulatory snowballs that will most likely overshoot their supposed destination of Wall Street and land with a thud on the businesses and investors of Main Street. Rather than postpone the planned vote on Tuesday, when the federal government was officially closed, agencies sheltered themselves from public view and pushed through the rules.
According to USA Today, “CFTC spokesman Steven Adamske said his agency will...